Boris Johnson tells ministers he wants EU trade deal on 'right terms'

British Prime Minister Boris Johnson told his top cabinet ministers on Tuesday he wanted a free trade deal with the European Union on the right terms but ending the year without one held "no fear".

"The prime minister told his colleagues that while we want a deal on the right terms, if we can't get there we are ready and willing to move forward with an Australian-style outcome which holds no fear," his spokesman told reporters.

The bulk of Australia's exports to the EU are subject to tariffs and quotas set under basic World Trade Organization (WTO) terms.